ENVALITH
株式会社オークワ logo

OKUWA CO., LTD.

8217・Prime Market・Retail Trade

Official website
株式会社オークワ logo
OKUWA CO., LTD.8217

Business

Oakwa Co., Ltd. was founded in 1969 and operates a supermarket chain centered on the Kinki and Tokai regions. The company consists of 5 consolidated subsidiaries and 1 affiliated company, and in addition to its core Supermarket Business (net sales of ¥236,207 million), it operates peripheral businesses including the Food Service Business (Oak Foods Co., Ltd.), Agricultural Products Processing & Delivery (Sunrise Co., Ltd.), Facility Management Outsourcing (Retail Back Office Support Co., Ltd.), and Cleaning Business (Mommy Co., Ltd.). Its main customers are general consumers in the Kinki and Tokai regions, and it provides products and services closely tied to daily life, centered on food and daily necessities. The company is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

Supermarket stores serve as customer-drawing hubs, with peripheral businesses such as food service, cleaning, and book rental established within the stores to create mutual customer-referral synergies. The main revenue source is retail sales of food and daily necessities (net sales of ¥237,528 million), with real estate leasing revenue (¥4,040 million) also serving as a stable income source. The company aims to build customer loyalty through One-to-One marketing using its proprietary official app, and is promoting cost optimization by improving in-store operational efficiency through DX utilization.

Company Strengths

Since its founding in 1969, the company has built a store network centered on the Kinki and Tokai regions. In FY2025 (ending February 2025), it newly opened three stores—Super Center Chita, Nishiyamato, and Tondabayashi Asahigaoka—and rolled out new formats such as specialty deli & bakery shops and gift sake specialty shops. Its online supermarket has expanded to 22 stores, strengthening its omnichannel capabilities.

In FY2026 (ending February 2026), the equity ratio stood at 57.7%, a high level of financial stability for a food retailer. Net assets totaled ¥74,527 million, reflecting low reliance on borrowing and ample remaining capacity to raise funds from financial institutions.

Centered on its supermarket stores, the company operates peripheral businesses including Food Service Business (Oak Foods Co., Ltd.), Cleaning Business (Mommy Co., Ltd.), Facility Management Outsourcing (Retail Back Office Support Co., Ltd.), and Agricultural Products Processing & Delivery (Sunrise Co., Ltd.). Real Estate Leasing income of ¥4,040 million (up 2.3% year on year) has accumulated steadily, mitigating volatility risk in the core business to a certain degree.

ENVALITH's Perspective

In the cumulative first quarter of FY2027 (ending February 2027), the company recorded an operating loss of ¥318 million (versus operating profit of ¥59 million in the same period of the previous year), an ordinary loss of ¥278 million, and quarterly net loss attributable to owners of parent of ¥268 million, falling into the red across all profit line items. Net sales were ¥56,426 million (down 0.7% year on year), a slight decline, but selling, general and administrative expenses increased to ¥18,955 million (from ¥18,780 million in the same period of the previous year), which, combined with the decline in gross margin, placed significant pressure on earnings. As an external factor, heightened consumer thrift sentiment driven by rising food prices has led to a decrease in customer traffic, and structural headwinds continue.

The full-year earnings forecast for FY2027 (ending February 2027) has been left unchanged, calling for operating revenue of ¥255,500 million (up 1.1% year on year), operating profit of ¥2,100 million (up 11.8% year on year), and net income of ¥650 million (up 145.8% year on year). However, an operating loss of ¥318 million was recorded for the cumulative first quarter, meaning that ¥2,418 million in profit must be accumulated over the remaining three quarters to achieve the full-year operating profit target of ¥2,100 million. This level would substantially exceed the previous fiscal year's full-year operating profit of ¥1,878 million, and concerns over the likelihood of achievement given the second-half-weighted structure have not been dispelled.

Food Service Business (Oak Foods Co., Ltd.) saw a slight increase in revenue but a decline in profit due to an increase in SG&A expenses centered on personnel costs, while Agricultural Products Processing & Delivery Business (Sunrise Co., Ltd.) saw a decline in profit due to lower logistics handling volumes stemming from weak vegetable market prices and higher expenses—resulting in deteriorating earnings across all consolidated subsidiaries. In addition to the struggles in the core Supermarket Business, the complementary businesses are also acting as a drag, and at present the scope for earnings improvement at the group level as a whole is judged to be limited. In terms of the market environment, logistics costs, personnel costs, and energy costs remain elevated, and downward pressure from these external factors is expected to continue for the time being.

Growth Strategy

The company aims to recover customer traffic and improve profitability through DX, One-to-One marketing, and sustainability management

An initiative to boost sales by using marketing analysis to clarify priority products for each business format. In the first quarter, customer traffic fell below the same period of the previous year due to consumers' cost-saving mindset, and the effects of the initiative are only halfway realized.

An initiative aimed at retaining customers and increasing visit frequency through individualized approaches based on purchase data analysis. This is an ongoing effort, but given the decline in customer traffic in the first quarter, significant results remain limited so far.

An initiative to curb the increase in selling, general and administrative expenses by improving the efficiency of in-store operations through DX. SG&A expenses in the first quarter were ¥18,955 million, an increase of ¥175 million year on year, indicating that the effects have not yet fully materialized.

The company aims to contribute to local communities and enhance corporate value by continuing and strengthening initiatives in "decarbonization," "plastic reduction," and "food loss reduction," and by focusing on the mobile sales business and environmental conservation activities. This is an ongoing effort.

Last updated: July 17, 2026